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India’s imports marginally rose by 0.3 per cent to $491 billion in 2012-13 from $489.3 bn the previous year, driven by petroleum products and edible oils, along with still elevated demand of gold.
Imports of petroleum, oil and lubricants rose nine per cent to $169.3 bn in 2012-13 from $155 bn a year before. Oil and gold imports accounted for 45 per cent of the total bill. Gold imports fell five per cent to $53.8 bn in 2012-13 from $56.5 bn a year before, the data showed. This is why imports still rose, though moderately, although six of the 10 leading items (those leading to forex outgo of at least $10 bn) contracted in 2012-13 year-on-year.
Imports of edible oils, however, saw the steepest rise by 16 per cent to $11.2 bn from $9.7 bn in 2011-12, crossing the $10 bn mark for the first time. India imports around 60 per cent of its requirements, mainly from Indonesia and Malaysia.Another farm item, organic chemicals (mainly fertiliser), rose by eight per cent to $14.4 bn this year from $13.3 bn in 2011-12.
Metal scrap moved up 12 per cent to $15 bn from $13.4 bn the previous year. This is a positive sign, as these are mainly imported to meet the requirements of small scale industries. The rise in imports was arrested by fall in six other big items — gold, electronic goods, machinery barring electric and electronic goods, pearls and expensive stones, coal and transport equipment.
Of these, the sharpest fall, of 19 per cent, was witnessed in precious pearls and stones to $22.7 bn from $28.2 bn the previous year. Non-electric and non-electronic machinery imports were 8.1 per cent less.
Not a good sign, as the country is already battling an industrial slowdown, with industrial output for FY13 growing at an anaemic one per cent.
Says Ajay Sahai, director-general, Federation of Indian Export Organisations (FIEO), “The major concern is the decline witnessed in import of capital goods, as unless you have competitive manufacturing, exports would not be pushed up. Hence, this decline is certainly not a good sign.”
